Chapter 02 The Market System and the Circular Flow (ECON 203)

Chapter 02 The Market System and the Circular Flow 1. Contrast how a market system and a command economy try to cope with economic scarcity. 2. How does self-interest help achieve society’s economic goals? Why is there such a wide variety of desired goods and services in a market system? In what way are entrepreneurs and businesses at the helm of the economy but commanded by consumers? 3. Why is private property, and the protection of property rights, so critical to the success of the market s...